Over 300 jobs to go as company collapses

CRAMLINGTON construction company Merit and a number of its subsidiaries have gone into administration with the loss of more than 300 jobs.

- By COREENA FORD and GRAEME WHITFIELD

Merit's factory at Nelson Industrial Estate in Cramlington

The firm - a former North East Company of the Year - was one of the UK’s leading modular building companies and has worked on a number of major healthcare and business projects.

The company was building the new Berwick Infirmary, in Northumberland, but administrators said they had ceased all operations, with most of the company's 340 employees made redundant.

The administrators said they were trying to find a solution for Merit's customers, employees and creditors.

James Lumb and Will Wright from Interpath have been appointed joint administrators to Merit Group Services Limited, and Merit Health Limited and Merit Holdings Limited this week.

The appointment came after Merit experienced contractual issues and delays to a number of its major contracts, which in turn had a significant impact on cashflow.